Simple Steps to Financial Freedom and Wealth Building
STEP 2: Achieve Financial Freedom - Choosing Your Escape Vehicle
Do you want to achieve financial freedom? For most people, this is constantly on their mind. If you are reading CashFlow Avenue's 7 Simple Steps to Financial Freedom and Wealth Building, chances you are looking for ways to get out of the rat race and to achieve financial freedom. Unfortunately, it isn't always as easy as it sounds.
With your Financial Goals firmly defined in Step 1, you would now have to choose your "escape" investment vehicle. There are plenty of investment vehicles in the world. Let's name a few most common form of investment - fixed deposits, gold, bonds, real estate, stocks, stock options, mutual funds, starting a business on your own, etc.
From experience, you might probably be able to tell that every one of the above contains risk, except for fixed deposits. Profit, simply defined, is your reward for placing taking risk on your assets.
On surface, fixed deposits, look the safest form of investment but are probably the most risky because inflation rates are consistently higher that what the bank would pay you - slowly eating away your purchasing power in years to come. So, in truth, while your bank account is growing in numbers, you are actually becoming poorer. If there is no inflation (which will never happen in the long run), fixed deposits are still not the best escape vehicle because it takes just too long to appreciate. Who would want to wait 30 years before they can be rich?
Without getting involved into too much detail, let's jump straight into action. When choosing an escape vehicle, you probably would want to set a few criterions to screen out what will and will not work for you. The ideal escape vehicle or business should provide:
Liquidity - allows you to cash out within a few days.
Leverage on Your Capital - using only your capital can be slow. Select a vehicle that provides leverage that magnifies only returns but not losses.
Fast Results - should see return on investment within the 1 st month.
Easy to Set Up - should take no longer than 1 month to start.
Predictable Monthly Return on Investment (ROI) - be able to forecast accurately your monthly
Low Risk - consistent and provides a high percentage for success
Profit with Time - with each tick of the clock, you should be making money.
Utilizes The Power of Compound Interest - snowball your returns to accelerate your wealth building process.
After running these criterions over the choices of investment available, most vehicles don't make the cut. Of all, only 2 investment vehicles would make the cut.
Stay tuned for Step 3 for the Best Escape Vehicle.
CASHFLOW AVENUE is established to provide Low-Risk Options
Trading Recommendations to the common traders in their
pursuit of financial freedom and a better lifestyle.
http://www.cashflowavenue.com
- Related Videos
- Related Articles
- Ask / Related Q&A
- How to Obtain Real Wealth, Financially Speaking
- Real Estate Investing – 5 Primary Reasons it Will Help You Create Ultimate Wealth & Financial Freedom
- Young Adults Need To Seek Wealth Literacy, Not Financial Literacy
- Residual Autopilot Cash Flow Income: Shortcut to Fast Internet Wealth
- Discover the Simple Secret to Building Wealth
- The Future for Financial Planning
- Point and Click to your Financial Plan
- Point and Click your Financial Plan
Setting Smart Goals with Your Investment Accounts - What Do I Do if This Is a Recession?
By: Ozeme J Bonnette | 12/11/2009For the past two years, the stock market has mirrored a yo-yo. One day, it's up, while the next day, it's down. No one can agree on where the economy is headed. So, what is the best thing to do in an economic environment like this?
Make Money on the Web - What are My Options?
By: Tim Emerson | 12/11/2009Make money on the web needs some thought process as there are so many assorted info and data on the web. Are you wanting to sell a product or a service or do you want to earn money from advertisers on your little piece on the info superhighway? The choice is yours and the trails are marginally different from each other. With the first choice, selling a product or a service, it's much better for you to focus on a service that you are already presently doing or have operational ...
Debt Collection - Do You Know The Top 7 Tips To Handle Difficult Debtors And Recover Your Money?
By: Daljeet Sidhu | 12/11/2009Every business has its share of slow-paying and non-paying customers. Bad debt is a problem for businesses of all sizes. If you are considering dealing with non-paying customers yourself, think again. It may make sense to hire a collection agency instead. They are skilled in debt collection strategies and legal...
Car Insurance Coverage Recommendations - A Few Facts to Help You Decide
By: Jim Bassett | 12/11/2009If you are a vehicle owner, you no doubt realize the risk of driving without car insurance. In the USA it is compulsory for car owners to at least have some basic form of car insurance. Many other countries do not have the same requirements, but that does not mean...
How to reverse recession in matter of days
By: Niaz Ahmad Khan | 12/11/2009I have devised a new interest free instrument which if implimented in any country will generate more than enough money in few days to run the country for a year and much more by the end of the year. It will also help to create massive employment without any cost to the state.
Auto Insurance in Missouri, Requirements and Penalties
By: Jim Bassett | 12/11/2009Auto insurance in Missouri, like many other states, any driver or owner of an automobile is required to carry liability insurance on their vehicle. Even though this is a requirement, many individuals involved in accidents find that the drivers have no insurance. Due to this, many have unpaid collision claims...
How Entire Short Sell Process Works
By: Wincent Debry | 12/11/2009The 'Short sell' is a term utilized in many real estate circles, and the short sale of your home is a last ditch effort to prevent foreclosure. Probably to worst thing that would occur, isn't being able to look after your arrears, and this is one of those things that in some worst case instances people have taken their own lives. It is sad brooding about having your home go into foreclosure, losing your automobile, and it is small wonder why so many get unhappy. If you are ...
A Guide to Help You Understand the Different Kinds of Automobile Insurance Discount Plans
By: Jim Bassett | 12/11/2009What is the meaning of automobile insurance discount? Well the answer is that this is a discount that is offered by an auto insurance provider in a bid to acquire more customers. Furthermore, such discounted auto insurance policies are available as different types each of which is designed to appeal to...
7 Simple Steps to Financial Freedom and Wealth Building - Step 4
By: William Tan | 26/10/2005 | FinanceWith advancement in technology, the options trading business can be easily setup with a few clicks of the mouse. Welcome to the online world of trading.
Generate Consistent Stock Market Profit Through Credit Spread Writing
By: William Tan | 23/10/2005 | FinanceMany traders and investors dream about making consistent profit on the stock market.
7 Simples Steps to Financial Freedom and Wealth Building - Step 3
By: William Tan | 13/10/2005 | FinanceUsing the stock market for financial gain can result in financial freedom or financial ruin. Without even putting much thought, this is one vehicle that has created more millionaires...
7 Simples Steps to Financial Freedom and Wealth Building - Step 1
By: William Tan | 09/10/2005 | FinanceSimple Steps to Financial Freedom and Wealth Building STEP 1: Make up Your Mind and Setting Your Goals The first step to any form of planning is to determine your objectives and to set your goals.